MIRA INFORM REPORT

 

 

Report Date :

14.11.2014

 

IDENTIFICATION DETAILS

 

Name :

TIMURAN ENTERPRISE SDN. BHD.

 

 

Registered Office :

9-1, Jalan 11, Taman Kepong, 52100 Kuala Lumpur, Wilayah Persekutuan

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

06.09.2005

 

 

Com. Reg. No.:

708570-A

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the trading of palm oil products.

 

 

No of Employees :

10 [2014]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. The NAJIB administration also is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. The government is also trying to lessen its dependence on state oil producer Petronas. The oil and gas sector supplies about 32% of government revenue in 2013. Bank Negara Malaysia (central bank) maintains healthy foreign exchange reserves, and a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, Malaysia could be vulnerable to a fall in commodity prices or a general slowdown in global economic activity because exports are a major component of GDP. In order to attract increased investment, NAJIB earlier raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

 

Source : CIA

 

 


EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

708570-A

COMPANY NAME

:

TIMURAN ENTERPRISE SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

06/09/2005

COMPANY STATUS

:

EXIST

LEGAL FORM

:

Private Limited

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

9-1, Jalan 11, Taman Kepong, 52100 Kuala Lumpur, Wilayah Persekutuan, Malaysia.

BUSINESS ADDRESS

:

Lot 2236, Kawasan Perusahaan Kampung Jaya, Jalan Hospital, Off Jalan Kusta, 47000 Sungai Buloh, Selangor, Malaysia.

TEL.NO.

:

03-61403301

FAX.NO.

:

03-61572960

CONTACT PERSON

:

SOW THIAM POH ( DIRECTOR )

INDUSTRY CODE

:

46202

PRINCIPAL ACTIVITY

:

TRADING OF PALM OIL PRODUCTS

AUTHORISED CAPITAL

:

MYR 5,000,000.00 DIVIDED INTO
ORDINARY SHARE 5,000,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 1,500,000.00 DIVIDED INTO
ORDINARY SHARES 100,000 CASH AND 1,400,000 OTHERWISE OF MYR 1.00 EACH.

SALES

:

MYR 89,294,841 [2013]

NET WORTH

:

MYR 4,830,167 [2013]

STAFF STRENGTH

:

10 [2014]

BANKER (S)

:

MALAYAN BANKING BHD

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MATURE

 

HISTORY / BACKGROUND

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act, 1965 and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) trading of palm oil products.

The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

30/06/2013

MYR 5,000,000.00

MYR 1,500,000.00

 

The major shareholder(s) of the Subject are shown as follows :

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

MR. SOW THIAM POH +

22, JALAN KERUING, BUKIT BANDARAYA BANGSAR, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

560419-10-5799 8212650

1,499,999.00

100.00

MS. CHIANG MEI LENG

22 JALAN KERUING, BUKIT BANDARAYA, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

590817-10-5724 5760352

1.00

0.00

---------------

------

1,500,000.00

100.00

============

=====

+ Also Director

DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MS. SOW KIM YIM

Address

:

2860, JALAN 5, JINJANG UTARA, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

New IC No

:

820722-14-5468

Date of Birth

:

22/07/1982

Nationality

:

MALAYSIAN

Date of Appointment

:

10/04/2007

 

DIRECTOR 2

 

Name Of Subject

:

MR. SOW THIAM POH

Address

:

22, JALAN KERUING, BUKIT BANDARAYA BANGSAR, 59100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

IC / PP No

:

8212650

New IC No

:

560419-10-5799

Date of Birth

:

19/04/1956

Nationality

:

MALAYSIAN

Date of Appointment

:

06/09/2005



MANAGEMENT

 

 

1)

Name of Subject

:

SOW THIAM POH

Position

:

DIRECTOR

 

AUDITOR

 

Auditor

:

K.S.CHAI & CO.

Auditor' Address

:

9-M, JALAN 11, TAMAN KEPONG, 52100 KUALA LUMPUR, WILAYAH PERSEKUTUAN, MALAYSIA.

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MS. LEE WAI CHING

IC / PP No

:

7289020

New IC No

:

640222-08-5034

Address

:

2112,JALAN E5/19, TAMAN EHSAN KEPONG, 52100 KUALA LUMPUR, MALAYSIA.

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

MALAYAN BANKING BHD

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

1

12/07/2007

N/A

MALAYAN BANKING BHD

MYR 1,944,549.00

Unsatisfied

2

10/12/2010

TRADE FINANCING GENERAL AGREEMENT

HSBC BANK MALAYSIA BHD

-

Unsatisfied

 

LITIGATION CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject whether the Subject has been involved in any litigation. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A


The Subject refused to disclose its suppliers.

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

X

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

MALAYSIA

Overseas

:

YES

Export Market

:

EUROPE

ASIA

Credit Term

:

AS AGREED

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Goods Traded

:

PALM OIL PRODUCTS

 

Total Number of Employees:

 

YEAR

2014

2013

2012

GROUP

N/A

N/A

N/A

COMPANY

10

20

20

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of palm oil products.

The Subject has been a trader and exporter of various palm oil products and oleochemicals for the manufacturing of soap and toiletry products for more than 20 years.

The products including Refined, Bleached and Deodorized (RBD), Palm Oli and Palm Stearin; Soya Bean Oil; Refined Glycerine,Soap Noodles; Stearic Acid; Palm Acid Oil; Coconut Oil; Vegetable Oil; Palm Fatty Acid; Soya Fatty Acid; Coconut Fatty Acid.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

03-61403301

Match

:

N/A

Address Provided by Client

:

MALAYSIA

Current Address

:

LOT 2236, KAWASAN PERUSAHAAN KAMPUNG JAYA, JALAN HOSPITAL, OFF JALAN KUSTA, 47000 SUNGAI BULOH, SELANGOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

YES

 

Other Investigations


On 12th November 2014 we contacted one of the staff from the Subject and he provided some information on the Subject.

The address provided is incomplete.

FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

2009 - 2013

]

Profit/(Loss) Before Tax

:

Increased

[

2009 - 2013

]

Return on Shareholder Funds

:

Acceptable

[

18.38%

]

Return on Net Assets

:

Acceptable

[

18.36%

]

The Subject's turnover increased steadily as the demand for its products / services increased due to the goodwill built up over the years.The higher profit could be attributed to the increase in turnover. The Subject's management had generated acceptable return for its shareholders using its assets.

Liquidity

Current Ratio

:

Acceptable

[

1.13 Times

]

The Subject has an adequate liquidity position with its current liabilities well covered by its current assets. With its net current assets, the Subject should be able to repay its short term obligations.

Solvency

Liability Ratio

:

Unfavourable

[

2.94 Times

]

The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected.

Overall Assessment :

Generally, the Subject's performance has improved with higher turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject's liabilities level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

Overall financial condition of the Subject : FAIR

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2010

2011

2012

2013

2014**

Population ( Million)

28.35

28.70

29.30

29.80

30.30

Gross Domestic Products ( % )

7.2

5.1

5.6

5.3

6.0

Domestic Demand ( % )

6.3

8.2

9.4

5.6

6.4

Private Expenditure ( % )

8.1

8.2

8.0

7.4

7.9

Consumption ( % )

6.7

7.1

1.0

5.7

6.5

Investment ( % )

17.7

12.2

11.7

13.3

12.0

Public Expenditure ( % )

3.8

8.4

13.3

1.2

2.3

Consumption ( % )

0.2

16.1

11.3

(1.2)

2.1

Investment ( % )

2.8

(0.3)

15.9

4.2

2.6

Balance of Trade ( MYR Million )

118,356

116,058

106,300

110,700

52,314

Government Finance ( MYR Million )

(40,482)

(45,511)

(42,297)

(39,993)

(37,291)

Government Finance to GDP / Fiscal Deficit ( % )

(5.6)

(5.4)

(4.5)

(4.0)

(3.5)

Inflation ( % Change in Composite CPI)

5.1

3.1

1.6

2.5

3.3

Unemployment Rate

3.9

3.3

3.2

3.0

3.0

Net International Reserves ( MYR Billion )

329

415

427

-

417

Average Risk-Weighted Capital Adequacy Ratio ( % )

2.20

3.50

2.20

-

-

Average 3 Months of Non-performing Loans ( % )

15.30

14.80

14.70

-

-

Average Base Lending Rate ( % )

6.30

6.60

6.53

6.53

-

Business Loans Disbursed( % )

14.7

15.3

32.2

-

-

Foreign Investment ( MYR Million )

22,517.9

23,546.1

26,230.4

38,238.0

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

44,148

45,455

45,441

46,321

-

Registration of New Companies ( % )

6.2

3.0

(0.0)

1.9

-

Liquidation of Companies ( No. )

25,585

132,476

-

-

-

Liquidation of Companies ( % )

(34.5)

417.8

-

-

-

Registration of New Business ( No. )

271,414

284,598

324,761

329,895

-

Registration of New Business ( % )

-

-

-

-

-

Business Dissolved ( No. )

19,738

20,121

-

-

-

Business Dissolved ( % )

2.0

1.9

-

-

-

Sales of New Passenger Cars (' 000 Unit )

543.6

535.1

552.2

-

-

Cellular Phone Subscribers ( Million )

32.8

35.3

38.5

43.0

-

Tourist Arrival ( Million Persons )

24.6

24.7

25.0

25.7

-

Hotel Occupancy Rate ( % )

63.0

60.6

62.4

62.6

-

Credit Cards Spending ( % )

14.1

15.6

12.6

-

-

Bad Cheque Offenders (No.)

33,568

32,627

26,982

28,876

-

Individual Bankruptcy ( No.)

18,119

19,167

19,575

21,984

-

Individual Bankruptcy ( % )

11.7

5.8

2.1

12.3

-

 

INDUSTRIES ( % of Growth ):

2010

2011

2012

2013

2014**

Agriculture

2.4

5.8

1.0

2.1

3.8

Palm Oil

(3.4)

10.8

(0.3)

2.6

-

Rubber

9.9

6.1

(7.9)

(10.1)

-

Forestry & Logging

(3.3)

(7.6)

(4.5)

(7.8)

-

Fishing

5.6

2.1

4.3

1.6

-

Other Agriculture

7.9

7.1

6.4

8.2

-

Industry Non-Performing Loans ( MYR Million )

508.4

634.1

-

-

-

% of Industry Non-Performing Loans

2.1

3.2

-

-

-

Mining

(0.3)

(5.4)

1.4

0.9

(0.8)

Oil & Gas

0.5

(1.7)

-

-

-

Other Mining

-

-

-

-

-

Industry Non-performing Loans ( MYR Million )

49.7

46.5

-

-

-

% of Industry Non-performing Loans

0.1

0.1

-

-

-

Manufacturing #

11.9

4.7

4.8

3.4

6.6

Exported-oriented Industries

12.1

4.1

6.5

3.3

5.6

Electrical & Electronics

28.4

(4.0)

12.7

6.9

13.3

Rubber Products

25.3

20.7

3.0

11.7

(0.3)

Wood Products

20.1

(5.1)

8.7

(2.7)

5.1

Textiles & Apparel

(0.4)

13.2

(7.1)

(2.6)

11.5

Domestic-oriented Industries

16.3

10.7

1.7

6.8

9.4

Food, Beverages & Tobacco

3.0

4.8

2.7

3.6

6.1

Chemical & Chemical Products

16.2

10.0

10.8

5.6

-

Plastic Products

2.4

3.8

-

-

-

Iron & Steel

29.3

2.2

(6.6)

5.0

0.1

Fabricated Metal Products

14.9

21.8

13.8

9.9

2.9

Non-metallic Mineral

20.2

12.1

2.9

(2.0)

5.4

Transport Equipment

36.5

12.0

3.4

13.8

22.9

Paper & Paper Products

18.7

9.5

3.1

1.8

4.7

Crude Oil Refineries

(11.4)

9.3

-

-

-

Industry Non-Performing Loans ( MYR Million )

6,217.5

6,537.2

-

-

-

% of Industry Non-Performing Loans

23.8

25.7

-

-

-

Construction

11.4

4.7

18.6

10.9

10.0

Industry Non-Performing Loans ( MYR Million )

4,038.5

3,856.9

-

-

-

% of Industry Non-Performing Loans

10.7

10.2

-

-

-

Services

7.4

7.0

6.4

5.9

6.2

Electric, Gas & Water

7.8

3.5

4.4

4.2

3.6

Transport, Storage & Communication

7.7

6.5

7.1

7.3

7.5

Wholesale, Retail, Hotel & Restaurant

4.7

5.2

4.7

5.9

6.9

Finance, Insurance & Real Estate

6.10

6.90

9.70

3.70

4.65

Government Services

5.9

12.4

9.4

8.3

6.1

Other Services

4.4

5.1

3.9

5.1

4.8

Industry Non-Performing Loans ( MYR Million )

7,384.6

6,825.2

-

-

-

% of Industry Non-Performing Loans

25.7

23.4

-

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index 

 

INDUSTRY ANALYSIS

 

MSIC CODE

46202 : Wholesale of palm oil

INDUSTRY :

PALM OIL

Oil palm is one of the main drivers of Malaysia's agriculture sector where it has accounting for 71% of its agricultural land bank. Malaysia is the one of the biggest producers and exporters of palm oil prodcuts in the growing global need for oils and fats. The palm oil industry is expected to grow about 7.1% over the next 10 years where it is driven by new plantation expansion, venture of large plantation companies into high potential downstream activities such as processed food, biodiesel, second generation biofuel and oleochemicals. Malaysia currently accounts for 39 % of world palm oil production and 44% of world exports. Taken into account of other oils & fats produced in the country, Malaysia accounts for 12% and 27% of the world's total production and exports of oils and fats. Being one of the biggest producers and exporters of palm oil and palm oil products, Malaysia has an important role to play in fulfilling the growing global need for oils and fats sustainably.

In year 2013, the production of crude palm oil is envisaged to rebound 2.5% to 18.9 million tonnes on account of expanded matured areas to 4.44 million hectares. However Malaysian palm oil’s supply and demand for February 2013 with palm oil stocks continued to be lower for the consecutive two months at 2.444 million tonnes, a decrease of 5.23% from January 2013 and was slightly above the average estimation at 2.42 million tonnes. The exports in February 2013 fell 13.98% to 1.398 million tonnes while the palm oil production reduced 19.15% to 1.296 million tonnes. The palm oil production would be expected to be in dismal as the oil palm had entered a low yield cycle currently.

According to the 2013 Budget, the palm oil sector contracted 8.6% during the first half of the year 2012 due to the less favourable weather conditions and natural production down cycle that constrained the output of fresh fruit bunches. However, the yield is expected to improve in the later part of the year, with the subsector registering a smaller contraction of 2.8% in 2012. Total planted areas of oil palm increased substantially by 77,106 hectares to five million hectares as at end-June 2012. Of the total planted areas, 28.4% or 1.5 million hectares are located in Sabah. With the acceleration of planting activity, total planted areas are expected to increase to 5.1 million hectares in 2012.

According to the Performance Management and Delivery Unit (Pemandu), the Palm Oil National Key Economic Area (NKEA), Malaysia's most important commodity is expected to contribute from RM125 billion to RM178 billion to the Gross National Income (GNI) and create about 41,600 jobs by 2020, with the government's focus on eight Entry Point Projects (EPPs). As part of the government's efforts to accelerate the country's replanting and new planting programme and manage stock levels, the government has allocated an additional RM432 million as funds for independent smallholders' replanting and new planting initiatives in 2013. According to Pemandu, the government will also accelerate the replanting of oil palm by plantations and smallholders as well as new planting by independent smallholders to 130,000 ha. and raise the area complying with best practices by an additional 200,000 ha. in 2013.

However, the future performance of the industry is unpredictable as with many factors that can give impact to the industry is still unknown. Nationally, the sentiments seem positive, internation­ally there are mixed signals but with the current growth rate, an expected increase in demand, a recovering glo­bal economy, analysts and industry sources are reckoning that the bull may be able to hold the bear back.

Under the palm oil National Key Economic Areas (NKEAs) in 2011, the launches of the Oil Palm Replanting and New Planting Smallholders Schemes ware improved the smallholders agricultural practices in 2012.The oil extraction rate is set to improve to 21.05% in three-year from 2012 to low of 19.70% as 1.35 more.

In driving speedier harvesting of oil palm fruits, the government has introduced the RM1,000 discount scheme to encourage the use of motorised sickle called Cantas and diamond blade sharpeners to enhance the palm oil industry. MPOB appointed 100 enforcement officers to visit mills to ensure the only good quality crops are processed. Since 2007, the palm oil industry has grown at an average of 14.5 per cent annualy until 2012. If the momentum is maitained for next 5 to 8 years, malaysia will achive its target of two million of hecters palm oil.

OVERALL INDUSTRY OUTLOOK : Mature

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2005, the Subject is a Private Limited company, focusing on trading of palm oil products. Having been in business for more than 5 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. With a paid up capital of MYR 1,500,000, the Subject has greater opportunities to expand its business when the needs arise. Under the control of its directors, we considered that the Subject's business position in the market is much dependent on their abilities.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Being a small company, the Subject's business operation is supported by 10 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. The Subject has high liabilities ratio and it may face financial difficulties if no additional capital is injected. Given a positive net worth standing at MYR 4,830,167, the Subject should be able to maintain its business in the near terms.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises.

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

The industry has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the Subject's growth prospect is very much depends on its capacity in sustaining its performance in the market.

Based on the above condition, we recommend credit be granted to the Subject normally.

 

 

PROFIT AND LOSS ACCOUNT

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH MALAYSIAN FINANCIAL REPORTING STANDARDS(FRS)

TIMURAN ENTERPRISE SDN. BHD.

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

2010-12-31

2009-12-31

Months

12

12

12

12

12

Consolidated Account

Company

Company

Company

Company

Company

Audited Account

YES

YES

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

YES

YES

Financial Type

SUMMARY

FULL

FULL

FULL

FULL

Currency

MYR

MYR

MYR

MYR

MYR

TURNOVER

89,294,841

73,485,673

73,211,021

54,650,502

33,210,456

Other Income

-

417,078

292,462

348,275

111,132

----------------

----------------

----------------

----------------

----------------

Total Turnover

89,294,841

73,902,751

73,503,483

54,998,777

33,321,588

Costs of Goods Sold

-

(68,545,089)

(69,331,052)

(51,364,346)

(30,652,521)

----------------

----------------

----------------

----------------

----------------

Gross Profit

-

5,357,662

4,172,431

3,634,431

2,669,067

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) FROM OPERATIONS

1,088,639

737,471

468,197

399,878

158,975

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

1,088,639

737,471

468,197

399,878

158,975

Taxation

(200,970)

(215,905)

(122,093)

(117,611)

(59,414)

----------------

----------------

----------------

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

887,669

521,566

346,104

282,267

99,561

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

2,442,498

1,920,932

1,574,828

1,292,561

1,193,000

----------------

----------------

----------------

----------------

----------------

As restated

2,442,498

1,920,932

1,574,828

1,292,561

1,193,000

----------------

----------------

----------------

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

3,330,167

2,442,498

1,920,932

1,574,828

1,292,561

----------------

----------------

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

3,330,167

2,442,498

1,920,932

1,574,828

1,292,561

=============

=============

=============

=============

=============

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

-

197,086

194,635

157,400

126,034

Hire purchase

-

9,245

14,265

26,593

28,003

Term loan / Borrowing

-

75,298

79,074

78,305

78,812

----------------

----------------

----------------

----------------

----------------

-

281,629

287,974

262,298

232,849

=============

=============

=============

=============

=============

 

 

 

 

 

 

 

BALANCE SHEET

 

TIMURAN ENTERPRISE SDN. BHD.

 

ASSETS EMPLOYED:

FIXED ASSETS

4,248,769

4,533,998

4,395,743

4,644,211

4,439,779

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM ASSETS

4,248,769

4,533,998

4,395,743

4,644,211

4,439,779

Stocks

-

1,987,464

4,333,482

2,815,880

3,708,782

Trade debtors

-

5,216,342

3,016,785

4,187,440

3,132,668

Other debtors, deposits & prepayments

-

128,050

169,168

424,452

685,402

Amount due from related companies

-

393,952

112,173

-

-

Cash & bank balances

-

181,070

145,101

42,624

93,030

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT ASSETS

14,783,174

7,906,878

7,776,709

7,470,396

7,619,882

----------------

----------------

----------------

----------------

----------------

TOTAL ASSET

19,031,943

12,440,876

12,172,452

12,114,607

12,059,661

=============

=============

=============

=============

=============

CURRENT LIABILITIES

Trade creditors

-

3,391,754

3,380,544

1,997,466

2,838,365

Other creditors & accruals

-

319,999

575,830

524,271

489,551

Hire purchase & lease creditors

-

84,352

163,163

239,666

239,330

Bank overdraft

-

647,914

980,993

3,786,507

3,257,844

Short term borrowings/Term loans

-

159,284

153,982

148,031

139,264

Bill & acceptances payable

-

2,307,000

2,000,000

685,000

342,000

Amounts owing to director

-

245,306

83,035

-

-

----------------

----------------

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

13,101,288

7,155,609

7,337,547

7,380,941

7,306,354

----------------

----------------

----------------

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

1,681,886

751,269

439,162

89,455

313,528

----------------

----------------

----------------

----------------

----------------

TOTAL NET ASSETS

5,930,655

5,285,267

4,834,905

4,733,666

4,753,307

=============

=============

=============

=============

=============

SHARE CAPITAL

Ordinary share capital

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

----------------

----------------

----------------

----------------

----------------

TOTAL SHARE CAPITAL

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

Retained profit/(loss) carried forward

3,330,167

2,442,498

1,920,932

1,574,828

1,292,561

----------------

----------------

----------------

----------------

----------------

TOTAL RESERVES

3,330,167

2,442,498

1,920,932

1,574,828

1,292,561

----------------

----------------

----------------

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

4,830,167

3,942,498

3,420,932

3,074,828

2,792,561

Long term loans

-

1,132,490

1,254,522

1,391,522

1,532,127

Hire purchase creditors

-

104,701

53,873

169,824

358,456

Deferred taxation

-

105,578

105,578

97,492

70,163

----------------

----------------

----------------

----------------

----------------

TOTAL LONG TERM LIABILITIES

1,100,488

1,342,769

1,413,973

1,658,838

1,960,746

----------------

----------------

----------------

----------------

----------------

5,930,655

5,285,267

4,834,905

4,733,666

4,753,307

=============

=============

=============

=============

=============

 

 

 

 

 

 

 

FINANCIAL RATIO

 

TIMURAN ENTERPRISE SDN. BHD.

 

TYPES OF FUNDS

Cash

-

181,070

145,101

42,624

93,030

Net Liquid Funds

-

(2,773,844)

(2,835,892)

(4,428,883)

(3,506,814)

Net Liquid Assets

1,681,886

(1,236,195)

(3,894,320)

(2,726,425)

(3,395,254)

Net Current Assets/(Liabilities)

1,681,886

751,269

439,162

89,455

313,528

Net Tangible Assets

5,930,655

5,285,267

4,834,905

4,733,666

4,753,307

Net Monetary Assets

581,398

(2,578,964)

(5,308,293)

(4,385,263)

(5,356,000)

BALANCE SHEET ITEMS

Total Borrowings

-

4,435,741

4,606,533

6,420,550

5,869,021

Total Liabilities

14,201,776

8,498,378

8,751,520

9,039,779

9,267,100

Total Assets

19,031,943

12,440,876

12,172,452

12,114,607

12,059,661

Net Assets

5,930,655

5,285,267

4,834,905

4,733,666

4,753,307

Net Assets Backing

4,830,167

3,942,498

3,420,932

3,074,828

2,792,561

Shareholders' Funds

4,830,167

3,942,498

3,420,932

3,074,828

2,792,561

Total Share Capital

1,500,000

1,500,000

1,500,000

1,500,000

1,500,000

Total Reserves

3,330,167

2,442,498

1,920,932

1,574,828

1,292,561

LIQUIDITY (Times)

Cash Ratio

-

0.03

0.02

0.01

0.01

Liquid Ratio

-

0.83

0.47

0.63

0.54

Current Ratio

1.13

1.10

1.06

1.01

1.04

WORKING CAPITAL CONTROL (Days)

Stock Ratio

-

10

22

19

41

Debtors Ratio

-

26

15

28

34

Creditors Ratio

-

18

18

14

34

SOLVENCY RATIOS (Times)

Gearing Ratio

-

1.13

1.35

2.09

2.10

Liabilities Ratio

2.94

2.16

2.56

2.94

3.32

Times Interest Earned Ratio

-

3.62

2.63

2.52

1.68

Assets Backing Ratio

3.95

3.52

3.22

3.16

3.17

PERFORMANCE RATIO (%)

Operating Profit Margin

1.22

1.00

0.64

0.73

0.48

Net Profit Margin

0.99

0.71

0.47

0.52

0.30

Return On Net Assets

18.36

19.28

15.64

13.99

8.24

Return On Capital Employed

18.36

16.94

12.65

7.56

4.75

Return On Shareholders' Funds/Equity

18.38

13.23

10.12

9.18

3.57

Dividend Pay Out Ratio (Times)

-

0.00

0.00

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

-

0

0

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.56

UK Pound

1

Rs.97.10

Euro

1

Rs.76.61

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

TPT

 


 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

                                       New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.